What’s in the Aust Fed Budget for Small Business?

Here are some excerpts from several sites that summarise the key points for small business –

Aust Government Website:

The 2010-11 Federal Budget revealed funding for new and existing products and services to assist businesses. Some of the initiatives included in this year’s budget cover –

New programs or services

  • New national system for registering business names.
  • Funding to provide guaranteed training places for under 25s.
  • Funding for training costs of up to 50% for large organisations and 90% for small businesses.
  • Increase in employer sponsored skilled migration places.
  • Renewable Energy Future Fund to assist businesses to reduce their energy consumption.

Existing programs or services

  • Increased funding for business mediation services.
  • Extension of the Apprentice Kickstart Program.
  • Increased funding for the Textile, Clothing and Footwear Strategic Capability Program.
  • The program will now also be able to support smaller projects up to $500,000.

Tax and super changes

  • Company tax rate to fall to 28% by 2014.
  • 40% Resource Super Profit Tax to be in place from 2012.
  • Instant write off for small business assets to the value of $5000 from 2012-13
  • Increase to employer super contributions to 12% by 2019.

Business Spectator:

Small business owners and pensioners are the latest Australians to be gifted some small surprise in the federal budget. Small businesses will be eligible for a tax write-off of up to $5000 on assets.

“This new measure will replace the Entrepreneurs Tax Offset (ETO), saving $365 million over the forward estimates that only goes to a small number of businesses” Treasurer Wayne Swan said.

Smart Company:

Smart Company’s Patrick Stafford reports that “Business experts are disappointed over the Government’s new initiative to temporarily reduce the amount charged to SMEs in quarterly PAYG tax installments, saying it is only a minor initiative that could have been expanded.

In its budget last night the Government announced businesses will be given temporary reprieve in their quarterly PAYG statements, saying the GDP multiplier for this year will only be set at 4%. While this is an increase from the 2% rate set during the past two years, the rate had been set to jump to 8% this year.”

By Amy Lyden, Australian Businesswomen’s Network Advocacy Advisor tells us

“After scouring through the papers and online material, there aren’t a lot of surprises this year. The government has delivered a pretty basic budget promising to get Australia back in black by 2012-13.

There are many facets of the budget, but here I have focused on small business and working families.” See her comments

For more information on the Budget, visit the Innovation  website. For a full copy of the Budget and details visit the Budget 2010-11  website.

Categories Business Tax Tips & GST, Consulting

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